RESPs

Give the gift of education

 

What is an RESP? Expand/Collapse

An RESP or Registered Education Savings Plan is a government endorsed plan and is essentially a savings plan for full or part time post-secondary education. RESPs encourage students and families to plan and save up for their children’s education, and because of government grants, typically earn a much higher return than savings accounts, GICs, and other traditional savings plans. 

While contributions to RESPs are not tax deductible, income and grants that that accumulate in the plan are sheltered from tax until they are withdrawn and typically face a lower tax rate. 

 

Why take out an RESP? Expand/Collapse

Rising tuition and living expenses mean that the cost of a university or college education in the year 2018 could be as high as $100,000*. Currently, the average debt upon post-secondary graduation in BC is approximately $35,000. This debt can be a heavy burden on recent grads, delaying important life milestones such as home and car ownership, and even starting a family. 

RESPs can help reduce this burden and remove the financial worry and stress that too often accompanies university and college education. By starting to save well in advance of graduation, you can take advantage of government grants and the power of compound interest. It’s an investment opportunity you can’t afford to miss. 

 

Where do I go from here? Expand/Collapse

Now is the time to take your family’s future into your own hands. Opening an RESP account for your loved one is a wise investment – where else can you earn a guaranteed 20% return?

Contact your local G&F branch to learn more and to open a RESP today!